We are cutting our 12-month forward Shanghai Composite price target to3,700(implying 21% upside),as higher rates and regulatory tightening lead usto reduce our multiple forecast.However,we remain positive on earnings,pension fund investment,and MSCI index inclusion,and we update our viewson key themes and recommended stocks.
20170512-MORGAN_STANLEY-CHINA_EQUITY_STRATEGY:WHAT'S_NEXT_FOR_CHINA_A-SHARES?.pdf
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